Turkiye: Imported ferrous scrap prices inch down by $2/t w-o-w; limited bookings amid bearish sentiments

Imported ferrous scrap prices in Turkiye remained largely range-bound, with a slight drop of $2/t w-o-w reflecting a prevailing bearish near-term sentiment within the market. Turkish steel producers remained sidelined from the imported scrap market due to sluggish demand for longs and semis both locally and internationally.

During the Eid holiday, the market heard a couple of deals from the UK at $380/t and $381/t respectively, comprising around 40,000-45,000 t of mixed scrap CFR Turkiye.

As per market insiders, Turkish mills are possibly exploring European sellers offering competitive prices, considering the favourable exchange rate, which makes it profitable for them.

BigMint's assessment for US-origin HMS (80:20) bulk scrap stood at $380-382/t CFR, a decrease of $2/t w-o-w.

BigMint's assessment for bulk HMS (80:20) from the US East Coast stood at $359/t FOB, down $4/t w-o-w.

• Collection costs: Despite recent declines in HMS collection costs in the Benelux region, HMS collection costs in the Baltic region rose to Euro 320/t delivered to the docks recently, by up to Euro 5/t on the week. European recyclers reported lower collection costs but offers remained above $380/t CFR, highlighting limited material availability.
  
  
• Sell-side sentiment: In the US sell-side weakened slightly, with indicative levels for US-origin HMS (80:20) at $380-$385/t CFR. Shortsea Romania-origin HMS (80:20) saw a wide bid-offer spread, with buyers targetting below $360-364/t CFR and sellers aiming for $370-372/t CFR.
  
  

Turkish exported rebar stood at $595/t FOB. The scrap-to-rebar spread was assessed at $213/t FOB, which widened from $211/t last week.

Recent deals: An Aegean region-based mill, with 27,000 t mixed scrap comprising 17,000 t of HMS (80:20) at $382/t CFR and 10,000 t of shredded scrap at $399/t CFR Turkiye. The same mill booked UK-origin bulk cargo at $379/t comprising HMS (80:20) on a CFR Turkiye basis.

Following the normalisation period, a deal was reported from the US involving HMS (80:20) at $386/t, booked by a Mediterranean region-based mill on a CFR Turkiye basis.

Turkish company Toscelik Spiral Boru, a subsidiary of Tosyali Holding, has secured a contract with RWE to supply 130,000 tonnes and 105,600 meters of large-diameter pipes for an environmental transformation project in Germany. The project aims to repurpose closed open-pit mines into lakes using water from the Rhine river, with construction set to begin in late 2024 and conclude by the end of 2029. This initiative underscores Tosyali Holding's commitment to sustainability and its contribution to the EU Green deal.

Outlook: As per market insiders, limited HMS availability at docks persisted due to strong demand from European mills domestically. Similarly, Turkish mills sought restocking for May shipments, with further deal activity expected in the near term.